Watermota Limited - Period Ending 2021-12-31

Watermota Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 9

Watermota Limited

Company Information

Directors

Mr M W Beacham Mrs A D Merrick Mr D F Merrick Mr J M Wyatt

Company secretary

Mrs A D Merrick

Registered office

Unit 2 Cavalier Road Heathfield Industrial Estate Newton Abbot Devon TQ12 6TQ

Accountants

Francis Clark LLP Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Watermota Limited

Balance Sheet

31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	515,685	525,340
Current assets
Stocks		873,146	794,358
Debtors	5	324,480	279,306
Cash at bank and in hand		651,500	203,166
		1,849,126	1,276,830
Creditors: Amounts falling due within one year	6	(1,091,400)	(705,024)
Net current assets		757,726	571,806
Total assets less current liabilities		1,273,411	1,097,146
Creditors: Amounts falling due after more than one year	6	(195,870)	(168,528)
Provisions for liabilities		(17,000)	(16,000)
Net assets		1,060,541	912,618
Capital and reserves
Called up share capital		20,700	20,700
Capital redemption reserve		10,000	10,000
Profit and loss account		1,029,841	881,918
Shareholders' funds		1,060,541	912,618

Watermota Limited

Balance Sheet

31 December 2021

For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 April 2022 and signed on its behalf by:
 

......................................... Mrs A D Merrick Director

......................................... Mr D F Merrick Director

Company Registration Number: 00627154

Watermota Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 2
Cavalier Road
Heathfield Industrial Estate
Newton Abbot
Devon
TQ12 6TQ

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover represents the fair value of consideration receivable, excluding Value Added Tax, in the ordinary course of business for goods and services provided. Turnover is recognised when goods are supplied or when services are provided.

Government grants

Grant income is accounted for using the accruals method. Revenue grants are recognised on a systematic basis over the periods to which the costs to which the grants relate are recognised. Capital grants are recognised over the useful life of the related asset on the same basis as depreciation is charged.

Foreign currency transactions and balances

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Tax

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Watermota Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2021

Deferred tax is recognised on all timing differences at the balance sheet date between the treatments of transactions or events for taxation and accounting purposes which have occurred but not reversed by the balance sheet date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold Buildings	1% straight line
Freehold Land	0% straight line
Plant and Equipment	10% reducing balance
Motor Vehicles	25% reducing balance
Computer Equipment	20% straight line

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Leases

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

Defined contribution pension obligation

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Watermota Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2021

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans
• Cash and bank balances

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 13 (2020 - 18).

Watermota Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2021

5

Debtors

	2021  £	2020  £
Trade debtors	268,335	250,691
Other debtors	20,265	10,939
Prepayments	35,880	17,676
	324,480	279,306

6

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020  £
Due within one year
Loans and borrowings	7	168,737	161,224
Trade creditors		268,473	213,834
Social security and other taxes		185,849	116,268
Other creditors		148,044	132,744
Accrued expenses		320,297	80,954
		1,091,400	705,024

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	7	195,870	168,528

Watermota Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2021

7	Loans and borrowings

	2021 £	2020 £
Loans and borrowings due after one year
Bank borrowings	195,870	168,528

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	22,608	15,000
Bank overdrafts	146,129	146,224
	168,737	161,224

Bank Borrowings
Bank borrowings are secured by a charge over the company assets.

8	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £1 each	20,700	20,700	20,700	20,700

9

COVID-19

The directors of Watermota Limited have considered the impact of COVID-19.

During the year, the company received government support from the Coronavirus Job Retention Scheme totalling £15,537 (2020: £43,196). The total amount of grants recognised in the financial statements are as per the aforementioned amounts.

The company has also utilised the Government backed Bounce Back Loan scheme. Capital of £50,000 has been drawndown upon during the year ended 31 December 2021. The interest rate is 2.5% and the first year's interest is supported by the Government. The first repayment is made in March 2022.

In the opinion of the directors, the company has felt little impact upon its trade from the COVID-19 pandemic. It is therefore their opinion that the company has sufficient working capital within existing facilities to continue to trade for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.